Nvidia challenger Tenstorrent completes $700 million funding round backed by Jeff Bezos, other high-profile investors

In context: As AI continues to remake industries, the demand for more efficient and cost-effective AI chips is poised for immense growth. Tenstorrent's success in attracting this investment suggests that the market is ready for alternatives to Nvidia's offerings.

Tenstorrent, a Santa Clara, California-based startup, has secured nearly $700 million in funding, catapulting its valuation to $2.6 billion. This investment round, led by South Korea's AFW Partners and Samsung Securities, signals the emergence of another Nvidia competitor.

The company is also attracting the attention of tech industry titans. Amazon founder Jeff Bezos, through his investment firm Bezos Expeditions, has thrown his weight behind Tenstorrent's vision. Other investors include Samsung Electronics, LG Electronics, Fidelity Management & Research Company, Hyundai Motor Group, Export Development Canada, Healthcare of Ontario Pension Plan, and Baillie Gifford.

At the heart of Tenstorrent's appeal is its approach to AI chip design ...